Houston-Galveston Area Council
Building an Educated Workforce
Financial Standards References
Following are references for financial cost and administrative standards applicable to the state
and federal funds used in H-GAC workforce contracts.
1. Workforce Solutions Contract Management Policies and Procedures
http://www.wrksolutions.com/staff/contractmanagementpp.html
2. Texas Workforce Commission Financial Manual for Grants and Contracts
http://www.twc.state.tx.us/business/fmgc/fmgc_toc.html
3. Cost principles applicable to federally funded grants and subgrants are set forth in Office
of Management and Budget (OMB) Circulars and Code of Federal Regulations as
follows:




OMB Circular A-21, entitled “Cost Principles for Educational Institutions”
OMB Circular A-87, entitled “Cost Principles for State, Local and Indian Tribal
Governments”
OMB Circular A-122, entitled “Cost Principles for Non-Profit Organizations”
48 CFR Part 31, entitled “Contract Cost Principles and Procedures”
4. The Governor of Texas has also established “Cost Principles for State and Local
Governments and Other Affected Entities” as set forth in the Uniform Grant Management
Standards (UGMS). These standards apply to 1) state and local governments (excluding
school districts, colleges and universities and special districts), 2) sub-recipients of
federal block grants, and 3) any other entity that is required by contract to follow these
rules.
5. Administrative standards applicable to federally funded grants and sub-grants are set
forth in the grants management common rule (Common Rule) and Office of Management
and Budget (OMB) Circulars. In summary:

Federally funded grants and sub-grants awarded to state, local and Indian tribal
governments are subject to the administrative standards set forth in the Common Rule
and OMB Circular A-102. The codification of the Common Rule is provided in the
matrix below.
Building an Educated Workforce
Resources: Financial Management Standards—Page 1

Federally funded grants and sub-grants awarded to institutions of higher education,
hospitals, and other non-profit organizations, as well as, commercial organizations are
subject to the administrative standards set forth in OMB Circular A-110.
6. The Governor’s Office has also established uniform administrative requirements as set
forth in the Uniform Grant Management Standards (UGMS). These standards apply to 1)
state and local governments (excluding school districts, colleges and universities and
special districts), 2) sub-recipients of federal block grants, and 3) any other entity that is
required by contract to follow these rules.
Federal OMB Cost and Administrative Circulars
http://www.whitehouse.gov/omb/circulars/
Governor of Texas UGMCS
http://governor.state.tx.us/grants/what/
Building an Educated Workforce
Resources: Financial Management Standards—Page 2